Shares of Australian consumer staple companies saw a rise due to the impact of U.S. President Donald Trump's tariffs, causing market instability. Coles and Woolworths, the major grocers, were the main contributors to the sector's 1.3% increase, contrasting with a 0.9% drop in the wider Australian market. Coles climbed by 2.1% to A$20.29, and Woolworths saw a 1.6% rise to A$30.02, reaching their peak levels since March 4. Trump's decision to levy a 10% tariff on most U.S. imports had global repercussions, fueling concerns of a trade war and economic impact. Australian PM Anthony Albanese criticized the move while opting not to retaliate with tariffs against the U.S. The demand for consumer staples remains consistent amidst market volatility, with sectors like this one making up 3.8% of Australia's standard index. The leading supermarket chains, Woolworths and Coles, largely derive their earnings domestically. Emphasizing the stability of onshore earnings, investors are advised to consider companies that solely generate their revenue domestically. Businesses with high customer traffic, recurring revenue, and locally sourced products like Coles, Woolworths, and Metcash are viewed as better positioned to withstand the tariff situation. Notably, shares of Metcash increased by nearly 1%, while pub operator Endeavour saw a 0.5% rise.
/Article